Bread is a staple food made from a dough consisting of flour, water, yeast, and often other ingredients such as salt, sugar, and fat. The dough is typically baked, resulting in a soft, fluffy interior and a crusty outer layer.
The hustle involved in balancing work, family, and social commitments is becoming increasingly hectic. People seek quick, convenient food options such as sliced bread, loaves, baguettes, bagels, and buns. Ready-to-eat bread varieties, including sliced bread and sandwiches, are among the most preferred food options. Thus, changing lifestyles and busy schedules have increased the demand for bread nationwide. According to the Agriculture and Agri-Food Canada Sector Trend Analysis, per capita expenditure on baked goods increased by 2.5% in 2018 to reach US$ 173.2 in 2022.
The trend of urban dwelling has increased considerably in Canada over the years. According to Canada Mortgage and Housing Corporation (CMHC), the number of housing was 244,025 in 2021, i.e., it rose 21% over the previous year, marking the highest level of new home construction on record. The increased housing construction in Canada has surged the demand for pre-packed and portion-bread products, providing an easy meal solution and eliminating the need for time-consuming food preparations. Individuals living alone often prefer ready-to-eat bread as it offers portion control, reduces food waste, and is convenient for solo meals. Thus, the increasing construction of single households across the country propels the demand for convenience foods, positively influencing the market growth in Canada.
However, bread production requires whole-grain flour (e.g., wheat, rye, and barley), yeast, sugar, salt, and various natural additives and preservatives. As these ingredients are agricultural produce, they are subject to price fluctuations due to weather conditions, global supply and demand dynamics, and the seasonality nature of these agricultural products. When the prices of ingredients increase, it directly impacts the cost of bread production, leading to reduced profit margins for bread manufacturers. Price fluctuation makes it difficult for bread manufacturers to maintain stable pricing. Consumers quickly shift toward lower-price alternatives when the bread price increases. The price volatility in ingredients has posed a challenge for bread manufacturers, disrupting the procurement process and resulting in supply shortages, delays, or increased inventory costs. According to Statistics Canada, Canadian shoppers paid more for wheat-based food products, bread, rolls and buns, and breakfast cereal products in 2022. Canada recorded lower wheat production, i.e., down by 37.1% in 2021 due to drought conditions that arrived in Prairies. Therefore, Canadian food manufacturers paid 63.8% more for raw wheat in March 2022.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 4,247.60 Million |
| Market Size by 2030 | US$ 5,443.63 Million |
| Global CAGR (2023 - 2030) | 3.1% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2030 |
| Segments Covered |
By Type
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| Regions and Countries Covered | Canada
|
| Market leaders and key company profiles |
The List of Companies - Canada Bread Market